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Canarc Commences Phase 2 Drilling Program on the Benzdorp Property, Suriname

Canarc Resource Corp. (CCM: TSX and CRCUF: OTC-BB) announces that with the signing of the Articles of Incorporation of Benzdorp Gold N.V. last week by the President of Suriname and representatives of Canarc and Grassalco the incorporation process of Benzdorp Gold N.V. is now complete.

Benzdorp Gold N.V. is the Surinamese joint venture company that holds the respective interests of Canarc Resource Corp. and Grassalco N.V. (a Suriname state mining company) in the Benzdorp mineral concessions. Canarc holds an option to earn up to 80% of the voting shares and 100% of the net cash flow of Benzdorp Gold, subject to a net revenue or a net smelter interest to Grassalco.

Canarc also announces that the Phase 2 drilling program is now underway in the JQA discovery area on the Benzdorp property. The plan is to drill approximately 25 holes averaging 300m deep on a 100m-spaced grid in order to estimate a partial gold-copper resource by the end of June 2004.

A Longyear Super 38 diamond drill, JD 450 bulldozer and two shipping container loads of related drill and camp equipment and supplies have been mobilized to the Benzdorp property. A full complement of about 20 men are now onsite and drilling will commence this week.

Last year, Canarc drilled 38 holes in 5 prospect areas on the Benzdorp property with a portable Hydracore diamond drill and announced the discovery of gold-copper porphyry-type mineralization in the JQA prospect area. All twelve holes in the discovery area returned continuous mineralization within a 500m by 500m area, averaging 0.6 gpt gold (in saprolite and bedrock) and 0.15% copper (in bedrock only) up to 100m in depth.
The small drill will start testing additional prospect areas on the Benzdorp property in the 2nd quarter. Assay results for the last 10 drill holes are still awaited. Due to the very slow turnaround for assay results, Canarc has arranged for a certified Canadian assay lab to open in Suriname shortly. This should reduce the cost and time for assay results.
Canarc Resource Corp. is a growth-oriented, gold exploration and mining company listed on the TSX (symbol CCM) and the OTC-BB (symbol CRCUF). The Company’s principal assets are its 100% interest in the 1.3 million oz. (Not NI43-101 Compliant) New Polaris gold deposit located in northwestern British Columbia and its option on the huge Benzdorp gold property in Suriname. Major shareholders include Barrick Gold Corp. and Kinross Gold Corp

On Behalf of the Board of Directors
CANARC RESOURCE CORP.

/s/ “Bradford J. Cooke”

Bradford J. Cooke
President  and C.E.O.

For more information, please contact Gregg Wilson at tel: (604) 685-9700, fax: (604) 685-9744, email [email protected] or visit our website, www.canarc.net. The TSX Exchange has neither approved nor disapproved the contents of this news release.

Sep 14, 2006

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